South American weather concerns provided the catalyst for the gains in beans, which spilled into the canola market.

Chart-based buying contributed to the strength in canola with some stops hit on the way up as prices hit their best levels since early December. Continued weakness in the Canadian dollar was also supportive.

However, soyoil futures were down in Chicago, which tempered the upside potential in canola.

About 24,034 canola contracts traded on Monday, which compares with
Friday when 20,094 contracts changed hands. Spreading accounted for 15,282 of the contracts traded.

SOYBEANS
Soybean futures at the Chicago Board of Trade rallied sharply higher on Monday amid South American weather concerns. Rain only hit about half of Argentina over the weekend, and forecasts are calling for more hot and dry weather.

Some stops were hit on the way up, adding to the firmer tone. Reports that the U.S. had sold 312,000 tonnes of beans to unknown destinations were also supportive.

However, the USDA also reported that Chinese buyers had cancelled 455,000 tonnes worth of previously reported U.S. sales which limited the upside potential in beans.

The end of a truckers’ strike in Argentina should also see export competition pick back up out of that country, as old crop supplies remain large there despite any problems with the crop in the fields now.

CORN
Corn futures found some spillover support from the rally in soybeans. Solid export demand contributed to the gains, as South Korea was said to be in the market for some U.S. origin corn.

However, ample supplies and scale-up farmer selling tempered the advances.

WHEAT
Wheat futures posted solid gains, with the Chicago and Kansas City winter wheat contracts posting the largest advances amid concerns over the state of the U.S. winter wheat crops.

While parts of the U.S. Plains saw some much needed snow over the weekend, conditions remain dry overall which saw traders keeping a weather premium in the futures.

However, world supplies remain large, with the U.S. facing stiff competition out of Russia into many export markets.